NEC 2027

Expert: Algae Must Be Commercial Scale or Just Playing

John Davis

A man who is considered to be the father of genomics says that if algae-based fuel makers can’t start making billions of gallons of fuel, they are just playing with investors’ money.

This post on earth2tech.com says Craig Venter, the founder of synthetic biology startup Synthetic Genomics, made the remarks at the Wall Street Journal’s Economics conference this week:

In other words the algae companies need to be able to reach the scale at which the oil companies currently operate to be competitive. “That’s the real bugaboo for everybody,” said Venter. To address that hurdle, last July Synthetic Genomics announced that it was partnering with ExxonMobil on a $600 million algae biofuels program.

Synthetic Genomics is different than many of the algae fuel companies out there — Venter estimated there are 200 or so — because Synthetic Genomics is looking to use its synthetic genetic processes to tweak algae and other microorganisms to create synthetic super bugs that can crank out as much fuel as possible. Such genetically-altered bugs could consume CO2 and create synthetic hydro-carbons that could be a fuel replacement.

Venter said the synthetic genomic process could one day fundamentally change not just fuel and transportation, but food supply, medicine, and clean water. Venter and his crew at the J. Craig Venter Institute have already created a completely synthetic bacterial genome, which they claimed back in 2008 was the largest man-made DNA structure ever. Now Venter and the researchers are “extremely close” to activating the synthetic bacteria chromosome in a new cell which would make “the first synthetic species,” and will be their “proof of concept,” as Venter put it at the conference. That’s some crazy stuff.

The article goes on to say that some biofuel companies, such as Synthetic Genomics, are forming partnerships with some big oil companies to address the issue. In addition, Algae biofuel maker Sapphire Energy says it will be able to produce 1 million gallons of algae-based biodiesel and jet fuel per year by next year and a billion gallons per year by 2025.

algae, Biodiesel

Advanced Biofuel Makers Call for Tax Credits

John Davis

The advanced biofuels industry is putting a bug in Congress’ ear, calling for lawmakers to allow for an investment tax credit that will help advanced biofuels makers get money to get their projects up to commercial scale and become eligible for another operating credit.

Biomass Magazine explains that the industry would be eligible for a federal production tax credit of 30 percent, but the incentive is unused because there are no operating commercial-scale facilities:

Nearly 40 industry-relevant groups such as the Renewable Fuels Association, BlueFire Ethanol, Coskata, Enerkem, Verenium, Range Fuels and Iogen signed a letter to U.S. Sen. Max Baucus, (D-Mont.), Charles Grassley (R-Iowa), Rep. Dave Camp (R-Mich.)and Rep. Charles Rangel (D-N.Y.), which points out that there will be no commercial cellulosic biorefineries commissioned before 2011, at the earliest. The principle cause for commercialization delay is lack of funding, the letter states, due to the severe plummet of the U.S. economy.

According to U.S. Department of Energy numbers, it costs $250 million to get a 50 million-gallon-a-year advanced cellulosic biofuel operation up and running, and right now, that’s some tough scratch to come up with in this economy.

biofuels, Government, Legislation, RFA

Biodiesel Standards Under Revision

John Davis

One biodiesel standard is under review, while another one has been revised.

This post on Truckinginfo.com says ASTM International is considering a cold weather biodiesel standard:

Through the ballot, the group will decide if changes need to be made within the specification, D6751. If changes are needed, the group will determine whether they should apply to all biodiesel, or whether the changes should apply to a new separate grade of biodiesel. According to the NBB, the new grade would be intended for use in extremely cold weather.

The ASTM Filter Clogging Work Group and the ASTM Biodiesel Task Force will decide the exact form of the ballot and its limits. The results will likely be presented at the June ASTM meeting.

Meanwhile, The American Society of Agricultural and Biological Engineers (ASABE) has revised its biodiesel fuel testing standard. This ASABE press release posted on ThomasNet News says ASAE EP552.1, Reporting of Fuel Properties when Testing Diesel Engines with Alternative Fuels Derived from Plant Oils and Animal Fats, will cover the reporting of testing of any alternative fuels derived from plant oils and their blends with petroleum diesel:

The original document was developed in the 1990s. Since that time, with the rapid growth of the biodiesel industry, the procedures and practices in reporting the testing of such alternative fuels have evolved considerably. The revised document reflects current practices and international standards, with input obtained from experts in industry, academia, and public service.

You can read more about the ASABE standards here.

Biodiesel

Iowa Biodiesel Mandate Still Alive

John Davis

As if to borrow a line from Monty Python, the Iowa biodiesel mandate is “not dead yet!”

The 5 percent biodiesel blend for every gallon of diesel sold in the state, although declared dead by many in the media (including yours truly), seems to be marching on. The Omaha World-Herald reports that the B5 legislation cleared the state Senate last year and still has a shot at clearing the House this year:

The fight seems destined to continue, according to Craig Cronbaugh, director of information for the Iowa Legislative Services Bureau, even though a lot of other proposals will be set aside Friday by the legislative “funnel.” Any bill not out of committee by Friday will no longer be considered, Cronbaugh said.

“But the B-5 bill is strangely alive,” he said, because it is still active in the House Ways and Means Committee.

“Ways and Means is exempt from the funnel,” Cronbaugh said. “So if it passes that committee, it could still make the full House floor” for a vote before the Legislature adjourns.

As you might remember from my post earlier this week, I had pointed out that while the bill died in the House Environmental Protection Committee, it still has a shot in the House Ways and Means Committee.

Biodiesel, Legislation

World’s Largest Soybean Plant to Use Verenium Process

John Davis

The world’s largest soybean processing plant will be using a a process from Verenium that will increase soybean oil production.

This company press release says Verenium’s Purifine(R) PLC enzymatic degumming process will be used at the Molinos Rio de la Plata’s San Lorenzo plant in Argentina … Argentina’s leading soybean and sunflower seed processor:

“Molinos’ ability to adopt new innovative technologies is what makes them a global leader in the edible oil market,” said Janet Roemer, Verenium’s Executive Vice President, Specialty Enzymes Business. “Verenium is pleased to be able to work with Molinos to further enhance their operating efficiency through the use of Purifine PLC, which allows for the simultaneous increasing of oil yields and improving the efficacy of meal production without requiring major changes to the existing plant layout.”

“Through Purifine PLC’s innovative enzymatic degumming process, we have seen a significant increase in oil yields and processing margins enabling our facility to more fully reach its potential,” said Luis Palacios, Molinos’ Industrial Manager. “The ability to squeeze extra yield from the same plant without increased chemical usage is critical to our philosophy of minimizing the overall environmental impact of our processes.”

The Molinos San Lorenzo facility is known for its state of the art technologies that maximize oil and meal yields from soybeans.

Soybeans

CARB Approves Roush Propane-Powered Ford Pickup

Joanna Schroeder

Although the California Air Resources Board (CARB), appears to be anti-corn-based ethanol (the EPA has just determined that corn ethanol has a greenhouse emission reduction value of 21 percent as compared to conventional gasoline) they have just given support to another alternative fuel – propane. ROUSH has just announced that CARB has granted certification approval for their propane-powered Ford F-250 and F-350 pickups. Now that the fuel meets the strict emission standards of the sate of California, the vehicle will be able to be sold and operated in all 50 states.

Todd Mouw, director of sales & marketing for ROUSH Propane Vehicles noted, “We have made a significant investment in our liquid-propane injection technology, and we look forward to helping fleet operators across the country reduce their carbon footprint and operating costs with our propane-powered vehicles. We have more than two hundred 2010 Ford F-250s and F-350s in our inventory, so we have plenty of trucks available to meet customer demand.”

With CARB’s approval, ROUSH is now allowed to sell their 2010 Ford F-250 and F-350 models with the 5.4L V8 engine. The company is also working towards receving the same certification for the upcoming 2011 propane-powered Ford E-150, E-250, E-350 passenger and cargo vans that will launch in the 2nd quarter of this year. In addition, ROUSH has plans to convert the Ford E-450 cutaway with the 6.8L V10 engine as well.

Company Announcement, Propane

SD Passes Blender Pump Legislation

A bill that will allow $1 million to retailers in the State of South Dakota to install ethanol blender pumps has passed legislation. House Bill 1192 will use funds through the American Recovery and Reinvestment Act of 2009. The prime sponsor of the bill was Representative Mitch Fargen.

Up to $10,000 can be used at each fueling facility to install blends of ethanol up to E85, but must be used between April 1 and May 28. Stations are allowed to use more than $10,000 if installing more than one blender pump.

As first reported by the South Dakota Corn Growers Association, Owen Jones, a farmer and rancher from Britton, South Dakota said, “With the incentives outlined in HB 1192, the State of South Dakota can play a significant role in getting the proper distribution system in place for the future of renewable fuels. Instead of dispensing one product, five different products can be dispensed from one pump. Another reason I am very supportive of this Bill is the fact that this legislation is not only good for the ethanol industry, but it is good for our nation. We need to rid ourselves of the addiction on foreign oil and change to a renewable fuel system which our nation controls.”

South Dakota currently has about 40 ethanol blender pumps throughout the state and nearly 100 E85 stations.

E85, Ethanol, Ethanol News, News

RFA Urges Full Funding of Ethanol Fuel Research

Cindy Zimmerman

The Renewable Fuels Association (RFA) is urging Congress to ensure full funding of fuels research programs to provide the necessary scientific basis for increasing ethanol blending.

Renewable Fuels Association LogoIn a letter this week to leaders of both the House and Senate Appropriations Subcommittees on Energy and Water Development, RFA President Bob Dinneen outlined concerns with the budget submitted by President Obama with respect to higher level ethanol testing. Specifically, Dinneen called on Congress to support full funding of the Biomass and Biorefinery Systems program’s Utilization of Platform Outputs R&D subprogram as well as funding for the Vehicle Technologies program’s Fuels Technology subprogram, which were cut or eliminated in the president’s budget.

“President Obama recently reaffirmed his commitment to both current ethanol technologies and next generation opportunities in his biofuels plan released in February,” said Dinneen. “Congress should take this opportunity to ensure these critical fuel research programs are fully funded and to allow America’s ethanol industry to reach its full potential to displace petroleum use in motor vehicles.”

The RFA is calling for the full $24 million for the Vehicle Technologies program’s Fuels Technology subprogram and for an additional $5 million appropriation for the Biomass and Biorefinery Systems R&D subprograms.

Read the letter here.

Ethanol, Ethanol News, Government, RFA

GE Chief: US Must Win Global Wind Turbine Race

John Davis

America is in danger of falling behind Asia when it comes to wind energy production. And the chief of General Electric says that is jeopardizing this country’s energy future.

Business Week reports that in remarks to the ARPA-E Energy Innovation Conference near Washington, DC, General Electric Co. chief Jeffrey Immelt said America must not give away this growth to every other country in the world:

Asia makes more than half the world’s wind and solar energy equipment, and is gaining ground as U.S. factories lose out to cheaper labor and higher demand for clean energy. China for the first time topped the U.S. in wind-turbine manufacturing and installations last year, the Brussels-based Global Wind Energy Council said yesterday in a report.

Immelt has helped lead the U.S. Climate Action Partnership, or USCAP, a coalition of businesses and environmental groups calling for Congress to put a cap on carbon-dioxide emissions. The group says legislation is needed so companies such as utilities and their suppliers know how to proceed with long-term investments. A measure passed by the House last year has stalled in the Senate.

The article goes on to say that Duke Energy Corp. CEO Jim Rogers told reporters at the conference that politicians need to change the argument away from scaring the public with polar bears on melting icebergs to focusing on what will stimulate the economy and create jobs … and then save the environment.

Wind

Biodiesel Credit Gets New Life

John Davis

It looks like the federal biodiesel tax credit that expired at the end of last year could have new life.

An extension of the $1-a-gallon blenders credit has been attached to the new, $150 billion American Workers, State and Business Relief Act, introduced by Senate Majority Leader Harry Reid (D-Nev.) and Sen. Max Baucus (D-Mont.). Biodiesel Magazine reports that the measure could come to a vote this week:

Biodiesel producers have watched hopefully and helplessly as a tax credit “extender” has been included now in four different pieces of legislation since last fall. For the time being, the industry remains a ringside spectator.

One Biodiesel Magazine source said the fact that some players in the biodiesel industry were “double-dipping” in 2007 and 2008 by taking the $1 per gallon federal excise tax credit for methyl ester blending, then shipping the fuel to Europe to cash in on additional subsidies, has caused a “public relations issue.”

It’s interesting that the biodiesel credit was too expensive of a provision when it was a bi-partisan measure from Baucus and Republican Sen. Charles Grassley from Iowa. Now, that Reid has his name attached, it is suddenly affordable. Hmmmm…

Biodiesel, Legislation